Awarding promotions without commensurate salary rises is becoming increasingly popular in UK businesses that are feeling the burn from the economic climate, reports The Grapevine Magazine Online.
According to a survey of 2,000 senior HR executives by OfficeTeam, many firms are navigating through uncertainty in terms of finance and as a result, 61 per cent report their organisations regularly award promotions without payrises.
This could be down to a number of reasons, according to the study, with rise-less promotions coming into play because of an existing salary freeze (40 per cent). However, in order to counteract the freeze, many firms are offering other services such as flexible working (39 per cent), additional leave (28 per cent), performance bonuses (25 per cent) or a deferred salary increase once the promoted staff member has proven their worth in their new role (20 per cent).
Phil Booth, Director of OfficeTeam, commented on the survey to onrec.com: "Every person is different and so are their views on what's important in their renumeration and benefits. While companies may be quick to increase salary in boom times, we're currently seeing a much stronger emphasis on other forms of compensation including deferred raises and bonuses as well as flexible hours and extra holidays.
"It's even more important for companies to stay in close contact with their valued employees to understand their motivation and what will encourage them to stay," he added.
Our gift to you...
Apply now for your personal leadership consultation with a Vistage Chair. They'll help you assess areas of strength of your business and identify areas of potential growth.
